Select Water Solutions Completes Nearly $700 Million Acquisition of Pilot Water
Key Facts
Select Water Solutions said on November 2, 2026, that it had completed its acquisition of Pilot Water Solutions for total consideration of nearly $700 million in a cash-and-stock deal. The company said about $600 million was paid in cash at closing. The deal expands Select’s presence in the Delaware Basin, where Pilot handles large volumes of produced water associated with oil and gas production. Chief Executive John Schmitz said adding Pilot "strengthens our position among the leading providers of water infrastructure services in the Delaware Basin." Select announced the agreement in September before completing it in November.
The consideration included the issuance of 5,149,331 shares of Class A common stock, along with one seller’s right to an additional conditional payment of $15 million. The payment is tied to the achievement of operational milestones expected in early 2027. The purchase agreement also includes a cash settlement mechanism for the seller if Select’s 30-day volume-weighted average share price falls below its comparison level. The average is calculated for the period preceding the trading day several months before the sixth anniversary of closing, according to the agreement’s terms. As a result, the final consideration depends in part on whether the milestones are achieved and on the stock’s performance during the specified measurement period.
At closing, a new credit agreement also took effect, including a $500 million revolving credit facility. Select’s previous secured, sustainability-linked facility ended at the same time. The new facility provides the company with available credit following completion of the acquisition. The closing announcement did not specify how much Select had drawn from the facility. The financing step came on the day the deal was completed, alongside the cash and shares received by the sellers.
When Select announced the agreement, it said Pilot owned more than 700 miles of pipelines, about 2.7 million barrels per day of active permitted disposal capacity, and an additional 0.9 million barrels per day of undeveloped permitted capacity. More than 80% of the produced-water volumes Pilot handles are concentrated in the heart of the Delaware Basin in New Mexico and Texas, with additional operations in other U.S. basins and regions. The company also said more than 80% of Pilot’s annual revenue is supported by long-term contracts, with an average term of more than seven years. Schmitz said the acquisition strengthens Select’s ability to manage growing produced-water volumes through integrated solutions. The assets give the company an extensive network of transportation, treatment and disposal capacity in a key area of its operations.
Select estimated that the produced-water volumes handled by Pilot increased from about 850,000 barrels per day in the first half of 2026 to about 1 million barrels per day in 2027. The company attributed the expected growth to a new contract based on minimum volumes of 175,000 barrels per day. It also expected total volumes handled by the combined platform to exceed 2.5 million barrels per day during 2027. When the agreement was announced, Select estimated Pilot’s adjusted earnings before interest, taxes, depreciation and amortization at between $100 million and $110 million in 2026, and between $120 million and $130 million in 2027. It said expected earnings growth was driven mainly by the new contract, while the chief executive said about 90% of minimum-volume commitments at the combined company were covered by investment-grade companies.
Select targeted additional annual cost savings of between $10 million and $15 million, which it said it expected to achieve within 12 to 18 months of announcing the agreement. The savings are part of the integration steps following completion of the deal, while the volume and earnings figures are company estimates made when the agreement was announced. WTTR shares closed at $19.73 on October 30, 2026, according to EL7 data. The company’s next upcoming event is its third-quarter 2026 earnings conference, scheduled for November 9 at 11 a.m. Eastern time. The event will give the company an opportunity to present its results and discuss its business after completing the acquisition.